UPDATE 1-Iron ore miner Northland cancels equity issue; shares fall

Feb 5 (Reuters) - Iron ore miner Northland Resources cancelled its planned $250-million equityissue and $125-million bond tap, which it hoped would finance afunding shortfall at a Swedish iron ore mine after a costblowout, it said on Tuesday.

Northland's Oslo-listed shares closed 24 percent lower,while the stock was down 24 percent on the Toronto StockExchange in midday trading, making it the TSE's second biggestpercentage loser.

The shares have lost nearly 90 percent of their value sinceJanuary in Oslo and Toronto.

"It became apparent to the company and its advisors ArcticSecurities and Pareto Securities that the company is not in aposition to conclude the offerings at the end of thesubscription period," Northland said in a statement.

"The company continues to engage in constructive discussionswith a number of investors, including bondholders, creditors andother stakeholders in order to present a sustainable long-termfinancial solution," it added.($1 = 5.4707 Norwegian kroner)